Alright! Well, at least it's going somewhere
I edited my boot.ini file and now it still gives me 2 options

but it will probably be easy to fix from this point..
It gives me:
Windows XP Home Edition
windows (default)

Here is a copy of exactly what I have in my boot.ini file..
[Boot Loader]
Timeout=5
Default=multi(0)disk(0)rdisk(0)partition(1)\WINDOW S
[Operating Systems]
multi(0)disk(0)rdisk(0)partition(1)\WINDOWS="Micro soft Windows XP Home Edition" /fastdetect